Security News > 2022 > September > Musk seeks yet another excuse to get out of Twitter buyout: This time it's Mudge's severance check

Elon Musk has come up with a new reason to get out of his acquisition of Twitter - a severance payment.

In the latest attempt, Musk's lawyers said the merger agreement stated Twitter would not "Grant or provide any severance or termination payments or benefits to any Company Service Provider other than the payment of severance amounts or benefits in the ordinary course of business consistent with past practice."

"As was the case with each of your prior purported terminations, the Musk Parties third purported termination is invalid for the independent reason that Mr Musk and the other Musk Parties continue to knowingly, intentionally, willfully, and materially breach the Agreement."

Musk claimed he had halted efforts to buy Twitter after officials refused to disclose the real number of fake accounts on its platform.

Musk has attempted to delay it multiple times and has tried to cancel the acquisition contract by accusing Twitter of breaching the rules on three separate occasions.

"The Agreement is not terminated, the Bank Debt Commitment Letter and the Equity Commitment Letter remain in effect, and Twitter again demands that Mr.Musk and the other Musk Parties comply with their obligations under the Agreement, including their obligations to use their respective reasonable best efforts to consummate and make effective the transactions contemplated by the Agreement," the letter added.

News URL

https://go.theregister.com/feed/www.theregister.com/2022/09/13/twitter_says_775m_severance_payment/